Voice of the Free Press: Put everything on the table

Feb. 15, 2013

Written by

Free Press Editorial Page Editor

Gov. Peter Shumlin’s refusal to consider raising income tax rates is starting to look more and more like a political fig leaf rather than a rational fiscal policy.

The governor has made his pledge to pay for state government without an increase in broad-based taxes a refrain of both his election campaigns and his tenure in office.

But with so many targeted taxes and fees in the works to cover the cost of various programs, failing to at least include so-called broad-based taxes as a funding option is becoming less and less defensible.

Already on the table are new or higher taxes on heating fuel, gasoline and break-open tickets. Gov. Shumlin’s proposals include shifting around money already targeting low-income Vermonters to help some people in that group at the expense of others.

With the Legislature putting a property tax increase on the table, it looks like the “broad-based tax” exclusion applies only to raising the tax rate on high income earners.

The governor has some interesting ideas -- about how to make the public education system better serve students, how to break the cycle of poverty and investing in Vermont’s long-term prosperity.

He also identifies some critical infrastructure needs, such as fixing and maintaining the state’s highways and bridges, and the need for a more predictable way to help pay for low-income heating fuel assistance.

He runs into headwinds with ideas about how he wants to pay for it all.

The problem with taxing things like heating oil, gasoline and break-open tickets is that they fail to take into consideration a person’s ability to pay.

With Gov. Shumlin and the Legislature tapping so many funding sources, the only fair thing to do is put everything on the table.

If the governor is to stand by his no broad-based taxes pledge, then he should show how raising tax rates even for the top incomes hurts all Vermonters.

If the programs are truly worth paying for, then neither the governor nor the lawmakers should apologize for seeking the money, if the money is sought in the fairest way possible.

Being fair would take into consideration the ability to pay as well as making sure those who benefit put up a stake as well.

Most of all, Vermonters should be able to easily figure out how much state government will cost them -- in terms of dollars, as a share of their income or wealth, in trade-offs and reduced services.

After all, the money that pays for state government ultimately comes from the same source -- taxpayers.